Q4 AND FY 2019 RESULTS PRESENTATION...OPEX and CAPEX 9 • Achieved USD46m OPEX savings on like-for-like basis in 2019 • Over 2018-19, USD100m OPEX savings achieved, in line with

ADNOC Classification: Public

Q4 AND FY 2019 RESULTSPRESENTATION

12 February 2020

ADNOC DistributionINVESTOR AND ANALYST CONFERENCE CALL


AGENDA

2

EXECUTIVE

SUMMARY

STRATEGY

UPDATE

Q4 & FY 2019

RESULTS

OUTLOOK01 02 03 04

ADNOC DISTRIBUTION | Q4 & FY 2019 RESULTS


DISCLAIMER

This communication includes forward-looking statements which relate to, among other things, our plans, objectives, goals, strategies, future operational performance and anticipated

developments in markets in which operate and in which we may operate in the future. These forward-looking statements involve known and unknown risks and uncertainties, many of

which are beyond our control and all of which are based on management’s current beliefs and expectations about future events. Forward-looking statements are sometimes identified

by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”, “would”, “intends”, “estimates”, “plans”, “targets”, or “anticipates” or the negative

thereof, or other comparable terminology.

These forward-looking statements and other statements contained in this communication regarding matters that are not historical facts involve predictions and are based on the beliefs

of our management, as well as the assumptions made by, and information currently available to, our management. Although we believe that the expectations reflected in such forward

looking statements are reasonable at this time, we cannot assure you that such expectations will prove to be correct.

Given these uncertainties, you are cautioned not to place undue reliance on such forward looking statements. Important factors that could cause actual results to differ materially from

our expectations include, but are not limited to: our reliance on ADNOC to supply us with substantially all of the fuel products that we sell; an interruption in the supply of fuels to us by

ADNOC; changes in the prices that we pay ADNOC for our fuels and to the prices that we are allowed to charge our retail customers in the UAE; failure to successfully implement our

operating initiatives and growth plans, including our mixed-mode service offering, our convenience store optimisation initiatives, our cost savings initiatives, and our growth plans;

competition in our markets; decrease in demand for the fuels we sell, including due to general economic conditions, improvements in fuel efficiency and increased consumer preference

for alternative fuels; the dangers inherent in the storage and transportation of the products we sell; our reliance on information technology to manage our business; laws and regulations

pertaining to environmental protection, operational safety, and product quality; the extent of our related party transactions with ADNOC and our reliance on ADNOC to operate our

business; the introduction of VAT and other new taxes in the UAE; failure to successfully implement new policies, practices, systems and controls that we implemented in connection with

or following our IPO; any inadequacy of our insurance to cover losses that we may suffer; general economic, financial and political conditions in Abu Dhabi and elsewhere in the UAE;

instability and unrest in regions in which we operate; the introduction of new laws and regulations in Abu Dhabi and the UAE; and other risks and uncertainties detailed in our

International Offering Memorandum dated 26 November 2017 relating to our initial public offering and the listing of our shares on the Abu Dhabi Securities Exchange, and from time to

time in our other investor communications.

Except as expressly required by law, we disclaim any intent or obligation to update or revise these forward-looking statements.

3 ADNOC DISTRIBUTION | Q4 & FY 2019 RESULTS

EXECUTIVESUMMARY

SPEAKER: AHMED AL SHAMSIACTING CHIEF EXECUTIVE OFFICER

ADNOC Distribution

01


HIGHLIGHTSResilient Q4 and Full Year 2019 performance in both Fuel and Non-Fuel Businesses

5

Strategic updateOperational and financial

performance

Prioritization of safety remains

core to our business

Net profit increased by 11.3%

YoY in Q4 2019 and by 4.2% YoY

in 2019

Sustained growth in total fuel

volumes (+2.0% YoY) including

retail fuel volumes (+1.2% YoY)

in Q4 2019

Free assisted fueling driving

growth in retail fuel volumes as

expected


2020 Outlook

Focus on superior customer

experience

Acceleration in CAPEX,

reflecting significant network

growth

Series of customer-focused

initiatives launched to enhance

the overall customer experience

ADNOC

on the go

ADNOC

Rewards

ADNOC

Oasis

Deliver on accelerated network

expansion

Strong Free Cash Flow

generation in FY 2019

(USD635m, +16.4% YoY),

supporting our dividend policy

Fuel Stations and Convenience

Stores network expansion on

track to be delivered in 2020

Grow EBITDA across all

businesses, pursue cost

optimization & margin

improvement initiatives

STRATEGY UPDATE

SPEAKER: MOHAMED AL HASHEMICHIEF OPERATING OFFICER

ADNOC Distribution

02


KEY STRATEGIC UPDATEFuel Business

7

• Low single digit fuel volume growth in 2H

2019

• Domestic network expansion to

accelerate starting 2020

- 45 new sites in advanced stage of

execution to be delivered by H1 2020

• 3 new pilot stations in Saudi Arabia in

2019

• Total fuel volumes up 2.9% YoY in 2H 2019

and 0.7% in 2019

Rebound in 2H19 retail fuel volumes

(+1.2% YoY)

• In 2019, 6 new fuel stations opened in the

UAE (3 in Dubai); construction on track to

deliver new stations as guided

• Strong growth in Corporate segment driven

by higher sales across products

• International expansion strategy in

execution mode with establishment of legal

entities and discussion with several players

2019 ANNOUNCED STRATEGY KEY MILESTONES ACHIEVED


Last Exit Fuel Station in Dubai


KEY STRATEGIC UPDATENon-Fuel business

8

• 14 new convenience stores in 2019

• Unveiled next generation ‘ADNOC

Oasis store’

• Convenience stores gross profit increased

20.6% YoY in 2019 driven by:

• New store openings, category

management, improved look and feel,

introduction of fresh food and coffee

offerings

• Average basket size up 5.0% YoY in 2019

• Non-fuel transactions up 9.8% YoY in 2019

KEY MILESTONES ACHIEVED

• Convenience store network to expand at

a faster pace than retail fuel sites

• Continued roll-out of convenience stores,

in addition to new food and coffee

offerings

• Further implementation of convenience

store revitalization program

2019 ANNOUNCED STRATEGY


New ADNOC Oasis C-store at Corniche


KEY STRATEGIC UPDATEOPEX and CAPEX

9

• Achieved USD46m OPEX savings on like-

for-like basis in 2019

• Over 2018-19, USD100m OPEX

savings achieved, in line with

guidance

• Balancing a reduction in our costs

while maintaining a high level of

customer service

• CAPEX of USD138m in 2019

KEY MILESTONES ACHIEVED

• USD50m of OPEX savings in 2019 on a

like-for-like basis

• Continued CAPEX efficiency in building

new stations

• Up to USD300m CAPEX in 2019 to

accelerate network expansion in UAE and

internationally and to invest in our digital

initiatives

2019 ANNOUNCED STRATEGY


New Stations Under Construction

Q4 & FY 2019 RESULTS

SPEAKER: PETRI PENTTICHIEF FINANCIAL OFFICER

ADNOC Distribution

03


Key Financial

Performance

USDm Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%)

Revenue 1,477 1,626 -9.1% 5,809 6,233 -6.8%

Gross Profit 342 322 6.0% 1,355 1,380 -1.8%

Margin 23.1% 19.8% 23.3% 22.1%

EBITDA 179 168 6.5% 773 755 2.3%

Margin 12.1% 10.3% 13.3% 12.1%

Underlying EBITDA1 179 183 -2.2% 740 691 7.2%

Margin 12.1% 11.3% 12.7% 11.1%

Net Income 135 121 11.3% 604 579 4.2%

Margin 9.1% 7.5% 10.4% 9.3%

Cash Generation

and Net Debt

USDm Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%)

Free cash flow2 107 101 5.7% 635 545 16.4%

Net debt 202 3 NM3 202 3 NM3

Profitability

Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%)

ROCE4 (%) 23.8% 24.2% - 23.8% 24.2% -

ROE5 (%) 59.2% 59.3% - 59.2% 59.3% -

Q4 & FY 2019 FINANCIAL PERFORMANCE

1. Underlying EBITDA excludes inventory movements 2. Free Cash Flow is calculated as EBITDA minus CAPEX11 4. Return on Capital Employed 5. Return on Equity

Solid underlying financial results…

...Leading to strong free cash flow generation...

...and high returns

ADNOC DISTRIBUTION | Q4 & FY 2019 RESULTS 3. Not meaningful


Q4 & FY 2019 OPERATING PERFORMANCE

12 1. Includes one franchised siteADNOC DISTRIBUTION | Q4 & FY 2019 RESULTS

Fuel Volumes

mL Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%)

Retail 1,705 1,685 1.2% 6,525 6,600 -1.1%

Corporate 585 548 6.7% 2,373 2,239 6.0%

Aviation 190 199 -4.3% 777 748 3.8%

TOTAL 2,481 2,432 2.0% 9,674 9,611 0.7%

Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%)

Fuel Operating

Metrics

Number of service stations – UAE 382 376 1.6% 382 376 1.6%

Number of service stations - Saudi Arabia1 2 2 - 2 2 -

Number of fuel transactions (millions) 41.4 40.8 1.5% 158.5 167.8 -5.5%

Q4 2019 Q4 2018 YoY (%) 2019 2018 YoY (%)

Non-Fuel

Operating Metrics

Number of convenience stores - UAE 264 250 5.6% 264 250 5.6%

Number of non-fuel transactions (millions) 11.6 11.7 -0.9% 46.9 42.7 9.8%

Average basket size (USD)2 5.3 5.0 5.4% 5.2 4.9 5.0%

2. Average basket size is calculated as convenience store revenue divided by number of convenience store transactions


GROSS PROFIT BY SEGMENT

13 1. Includes Allied Services

USDm Q4 2019 Q4 2018 YoY (%) FY 2019 FY 2018 YoY (%)

Fuel and Non-Fuel Retail 223 209 7.0% 861 900 -4.4%

Of which Fuel 201 189 6.7% 773 821 -5.9%

Of which Non-Fuel 22 20 10.4% 89 79 11.8%

Margin 22.1% 18.7% 22.1% 21.1%

Corporate 55 48 12.6% 237 214 10.8%

Margin 17.4% 14.5% 18.3% 16.6%

Aviation 46 50 -6.9% 192 197 -2.7%

Margin 33.8% 30.5% 34.2% 33.0%

Other1 18 16 12.8% 66 69 -4.9%

Total 342 322 6.0% 1,355 1,380 -1.8%

• In 2019, gross profit decreased due to lower inventory gains (USD 33m in 2019 compared to USD 65m in 2018)

• Retail gross profit declined in 2019 due to lower volumes and inventory gains, despite strong growth in Non-fuel business.

However, Q4 2019 retail gross profit increased driven by higher volumes, an increase in retail fuel margins following the

renegotiation of our fuel supply contract, an increase in non-fuel retail gross profit and improved operating cost efficiencies

• Corporate gross profit growth driven by increase in volumes, better stock management and dynamic product pricing

• Non-fuel retail delivering growth given new C-stores and initiatives to improve customer experience



USDm Q4 2019 Q4 2018 YoY (%) FY 2019 FY 2018 YoY (%)

Fuel and Non-Fuel Retail 110 84 31.0% 462 446 3.4%

Margin 10.9% 7.6% 11.9% 10.4%

Corporate 43 51 -15.6% 195 177 10.2%

Margin 13.9% 15.4% 15.1% 13.7%

Aviation 25 23 9.7% 100 93 7.7%

Margin 18.2% 14.0% 17.7% 15.5%

Other1 0 10 -94.8% 17 40 -57.4%

Total EBITDA 179 168 6.5% 773 755 2.3%

Underlying EBITDA2 179 183 -2.2% 740 691 7.2%

EBITDA BY SEGMENT

14

• 2019 Underlying EBITDA increased by 7.2% driven by higher fuel volumes, non-fuel growth and cost efficiencies

• 2019 Retail EBITDA growth driven by cost efficiencies and growth in non-fuel business

• 2019 Corporate EBITDA growth was driven by higher fuel volumes and cost efficiencies. Q4 2019 corporate EBITDA impacted

due to presence of one-off recovery in Q4 2018

• Aviation EBITDA growth was driven by higher fuel volumes and cost efficiencies

• Others mainly impacted by higher impairment expenses and lower Other Income

2. Underlying EBITDA excludes inventory movements1. Includes Allied Services.ADNOC DISTRIBUTION | Q4 & FY 2019 RESULTS


ROBUST CASH POSITION & LOW NET DEBT TO EBITDA RATIO

15

• Net cash generated from operating activities increased mainly due to robust cash flow from operations, partially offset by

increase in working capital

• Working capital increased due to a reduction in payment terms under retail fuel supply agreement

USD 475m of net cash generated

from operating activitiesNet debt / EBITDA

* Cash includes term deposits with banks

0.00x0.26x


747

Working capital

movements

Interest

Received

(272)

Dividend PaidCash at

Dec 2018 *

Cash flow from

operations

(126)

Capex Paid

1,490

33 (55)

Finance Cost

(525)

Cash at

Dec 2019 *

1,292


ADNOC Distribution

04

OUTLOOK

SPEAKER: AHMED AL SHAMSIACTING CHIEF EXECUTIVE OFFICER


2020 OUTLOOK

• Deliver accelerated domestic network expansion

• Targeting to open at least 60 new stations in UAE, which includes mix of traditional

and ‘ADNOC On the go’ stations

• To open 20-25 new stations in Dubai, most of which would be traditional stations

• Low single digit growth in total fuel volumes driven by market share gains

• Focus on sales of high margin products like premium fuels and lubricants

• Execute international growth strategy

• Deliver accelerated revitalization program for 100 convenience stores in 2020

• Further improvements in category management, introduction of high margin fresh food

and great coffee offerings

• Further enhancements to our customer-centric focus, including station optimization across

our network

• Deliver additional like-for-like cost savings of up to USD25m in 2020, in line with previous

guidance to achieve USD100m over 2020-23

• CAPEX acceleration (USD300-400m in 2020), reflecting significant growth in network

• Continued CAPEX efficiency in building new stations

17

Fuel

Non-Fuel

Cost

Efficiency


Q&A

Ahmed Al ShamsiActing Chief Executive Officer

Mohamed Al HashemiChief Operating Officer

Petri PenttiChief Financial Officer

ADNOC Distribution

Athmane BenzerrougChief Investor Relations Officer

ADNOC DISTRIBUTION

Q4 AND FY 2019 RESULTS PRESENTATION

ADNOC Distribution

THANK YOU

INVESTOR AND ANALYST CONFERENCE CALL

12 FEBRUARY 2020

[email protected]


ADNOC Distribution

05

APPENDIX


ADNOC DISTRIBUTION BUSINESS OVERVIEW

21

Fuel Retail

Commercial

Non-Fuel Retail Aviation

Retail

20

19

A E

BIT

DA

S

pli

t

20

19

A F

ue

l V

olu

me S

pli

t

Corporate

Aviation

Other(1)

Retail Fuel

& Non-Fuel

Corporate

60%13%

25%

2%

$773m

AviationRetail

Corporate

67%

8%

25%

9.67bn

Litres

Convenience Stores Allied Services

2019A

Gro

ss P

rofi

t S

plit

Aviation

Other(1)

Retail Fuel

& Non-Fuel

Corporate

64%14%

17%

5%

$1,355m

(1) Includes Allied Services


22

ADNOC DISTRIBUTION IN NUMBERS - 2019

264Convenience

Stores in the UAE

159 millionFuel

Transactions

47 millionNon-Fuel

Transactions

26Number of Vehicle

Inspection Centers**

84%Property

Occupancy Rate

9.7 billion litersTotal Fuel Volume

0.10Total Reportable

Injury Rate*

*Total Reportable Injury / 1,000,000 man hours

2Retail Fuel sites

in Saudi Arabia

382Retail Fuel sites

in the UAE

$6.5Average Gross

Basket Size

**Includes one permitting center

Documents

Q4 AND FY 2019 RESULTS PRESENTATION...OPEX and CAPEX 9 • Achieved USD46m OPEX savings on like-for-like basis in 2019 • Over 2018-19, USD100m OPEX savings achieved, in line with